Gradually and Then Suddenly:In Ernest Hemingway’s The Sun Also Rises, one character asks another how he went bust. The response is a classic: “Two ways, gradually and then suddenly." That's how companies, governments, pension funds, and individuals often fail:

"And it’s how conditions in complex markets shift as well. The underlying circumstances that shape the environment in which you operate can evolve at a snail’s pace, and then shift quickly, either as new actions are introduced, or as the agglomeration of changes reaching a tipping point."--strategy-business.com

Wilbur Ross: U.S. Recession Likely in Next 18 Months:

Video above published on Oct 14, 2016: Billionaire distressed-debt investor Wilbur Ross, chairman of WL Ross & Co., comments on U.S. financial markets and the possibility of a recession. He speaks during an interview with Bloomberg's Matt Miller and Scarlet Fu on "Bloomberg Markets."

• Next European bank bombshell: DoubleLine’s Jeffrey Gundlach dropped a new name to worry about on the European bank front. He says if “push comes to shove,” the German government will support Deutsche Bank. “But what about Credit Suisse, which has shown a similar decline in stock price? Who’s there to bail them out?”--MarketWatch.com. Italy’s Intesa Sanpaolo is matching Credit Suisse’s year-to-date losses. Spain’s Banco Popular is down 60% year-to-date. Gundlach has also said the ECB’s negative-interest-rate policy is running the risk of bankrupting its lenders, and Deutsche is a poster child for this: “You cannot save your faltering economy by killing your financial system.”
• Rail Freight Gets Clocked from all Sides in this Economy | Wolf Street: "Total US freight rail traffic, as measured in carloads and intermodal units, fell 6.1% in the week ended October 8, from the same week last year, the Association of American Railroads reported today. It was down 10% from the same week two years ago." See also: Freight Rail Traffic Plunges: Haunting Pictures of Transportation Recession | Wolf Street.

• Sheila Bair called the financial crisis but her new nightmare is student loans: "The problem is much worse," Bair replied. "The percentage of [former] students in distress on their student loans is significantly higher than we saw during the subprime crisis."--Bloomberg.com

• Starbucks held $1.2 billion in customer funds loaded onto Starbucks cards and its app as of Q1 2016, according to MarketWatch.com based on data from S&P Global Market Intelligence. Starbucks holds more money than some banks hold in deposits. But Starbucks doesn't have to worry about the most powerful man in banking, Fed governor Daniel Tarullo, who heads the Fed’s Committee on Bank Supervision. Tarullo took office at the Fed in 2009 at a moment of broad public support for a more aggressive tack and has pressed that advantage ever since. His influence ranges over everything from corporate strategy to how many billions of dollars banks must maintain in capital. Through the stress tests he championed to evaluate how banks might fare in another market shock, the Fed wields control over whether banks can raise the dividends they pay to shareholders--WSJ.com. See also:“All organizations with sales goals are going to be susceptible to falsified sales records,” said Kane, who worked at Wells Fargo in the 1980s and ’90s before founding Kane Bank Services, which focuses on bank sales practices.--LATimes.com